The United Nations Development Programme (UNDP) report entitled ‘Basic Public Services for 1.3 Billion People’ states that the lives of the Chinese have greatly upgraded in quality. Adult literacy rates are higher. Poverty rates are lower. Most importantly, Chinese people are living longer. The UN admits that what China has exhibited are among the most notable in the field of human development. There is a downside, though. The rich are now richer while the poor are poorer. China has fallen into the capitalistic rut after 30 years of economic reforms. The country is now tasting some of the bitterness of free market economy.

While rural poverty fell drastically from 30.7 percent in 1978 to a mere 1.6 percent in 2007, the great divide between rural and urban conditions is very stark. The wealth gap is very pronounced. The rich east coast differs sharply from the western hinterlands. The brisk economic growth is not exactly widespread. For instance, Shanghai schoolchildren are funded 10 times more than students at the grassroots level.

China is not exempt from the phenomenon of internal migration. Rural people are naturally drawn to what they deem is a better life in the cities. But there is a registration system in China where people are asked to register only in one place. So, the people who have moved to the cities, and that were previously registered in their rural provinces, cannot avail of the social services and welfare benefits that are, most likely, concentrated in cities. Hence, it is not only wealth that has not been distributed more equally, but also social services. China has, indeed, fallen into the trap of free economies.

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Via BBC